de-Paz, Albert; Marin-Solano, Jesus; Navas, Jorge - Facultat d'Economia i Empresa, Universitat de Barcelona - 2011
In the analysis of equilibrium policies in a dierential game, if agents have different time preference rates, the cooperative (Pareto optimum) solution obtained by applying the Pontryagin's Maximum Principle becomes time inconsistent. In this work we derive a set of dynamic programming equations...